WallStSmart

American Eagle Outfitters Inc (AEO)vsBurlington Stores Inc (BURL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Burlington Stores Inc generates 112% more annual revenue ($12.21B vs $5.75B). AEO leads profitability with a 5.9% profit margin vs 5.8%. BURL appears more attractively valued with a PEG of 2.99. AEO earns a higher WallStSmart Score of 65/100 (B-).

AEO

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 5.0Value: 6.0Quality: 6.0
Piotroski: 2/9Altman Z: 3.02

BURL

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 3.3Quality: 4.5
Piotroski: 5/9Altman Z: 1.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEOUndervalued (+10.1%)

Margin of Safety

+10.1%

Fair Value

$26.51

Current Price

$19.46

$7.05 discount

UndervaluedFair: $26.51Overvalued
BURLSignificantly Overvalued (-24.0%)

Margin of Safety

-24.0%

Fair Value

$246.69

Current Price

$234.02

$12.67 premium

UndervaluedFair: $246.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEO4 strengths · Avg: 9.5/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
75.6%10/10

Earnings expanding 75.6% YoY

Altman Z-ScoreHealth
3.0210/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

BURL2 strengths · Avg: 10.0/10
Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
95.9%10/10

Earnings expanding 95.9% YoY

Areas to Watch

AEO4 concerns · Avg: 3.0/10
Profit MarginProfitability
5.9%3/10

5.9% margin — thin

Operating MarginProfitability
2.1%3/10

Operating margin of 2.1%

Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

BURL4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Profit MarginProfitability
5.8%3/10

5.8% margin — thin

PEG RatioValuation
2.992/10

Expensive relative to growth rate

Free Cash FlowQuality
$-16.50M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AEO

The strongest argument for AEO centers on P/E Ratio, EPS Growth, Altman Z-Score.

Bull Case : BURL

The strongest argument for BURL centers on Return on Equity, EPS Growth. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : AEO

The primary concerns for AEO are Profit Margin, Operating Margin, Debt/Equity.

Bear Case : BURL

The primary concerns for BURL are Altman Z-Score, Profit Margin, PEG Ratio. Debt-to-equity of 2.95 is elevated, increasing financial risk.

Key Dynamics to Monitor

BURL carries more volatility with a beta of 1.43 — expect wider price swings.

BURL is growing revenue faster at 11.0% — sustainability is the question.

AEO generates stronger free cash flow (120M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEO scores higher overall (65/100 vs 63/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Eagle Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

American Eagle Outfitters, Inc. is a specialty retailer offering clothing, accessories, and personal care products under the American Eagle and Aerie brand names. The company is headquartered in Pittsburgh, Pennsylvania.

Burlington Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Burlington Stores, Inc. is a branded apparel retailer in the United States. The company is headquartered in Burlington, New Jersey.

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